Sussan Ley was replying to the Victorian government stalling on signing up to a compact involving its Commonwealth and NSW peers.

"Our government is very keen to progress the deal and we may look at something where there is a space for Victoria to come on board later or we may exclude Victoria," Ms Ley said.

Last month Victorian Regional Development Minister Mary-Anne Thomas declined to say when her government would sign up.

"We won't be drawn on timelines that are determined by the Commonwealth in order to meet their election cycle," Ms Thomas said referencing the federal poll due to be held by May.

Ms Ley said Victoria should not mar the deal, which was first announced before the last federal poll.

"It's never been to clear to me whether Victoria is using delaying tactics or doesn't want to be part of the regional deal, but I don't want the regional deal to be spoiled," she said.

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"This involves genuine game-changing strategic investment in our region."

NSW Deputy Premier Paul Toole declined to say if the state government would enter a deal excluding Victoria, but remained supportive of works identified via the deal.

"The NSW Government remains committed to supporting the Albury region through projects that will make it a better place to visit, live and do business," a speaker for Mr Toole said.

"However, the Victorian Government has failed to come to the table and have delayed the process.

"NSW will proceed with commitments for Albury regardless of the outcome of the Regional Deal."

The deal's federal minister Nola Marino would not comment on the prospect of a collaboration without the Garden State, saying "the invitation remains open to the Victorian Government to contribute to the deal with investment and project proposals".

The Opposition's regional development spokeswoman Catherine King said "Labor will honour all existing city and regional deals" if elected but queried work done to date.

"The reality though is that many of these deals have not been worth the paper they are written on - the government has been quick to get out the press release but have done no work on actually delivering for local communities like Albury-Wodonga," Ms King said.

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